MARKETING MANAGEMENTMARKETING MANAGEMENT
Lecture Notes for Business Introduction
By Fahmy Radhi
Marketing ConceptsMarketing Concepts
Marketing is the process of planning and executing
the conception, pricing, promotion...
Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Product
Variety
Quality
Design
Features
Brand Name
P...
Marketing ActivitiesMarketing Activities
Product:
 Develop new products
 Modify existing
products
 Test-market products...
Marketing ActivitiesMarketing Activities
Promotion:
 Determine types of
promotion
 Design the advertising
massage
 Sele...
MarketMarket
Market is people with the authority,
financial ability, and willingness to
purchase a product
Types of Market...
Target MarketingTarget Marketing
Target market - a group of people that has similar
wants and needs which a firm directs i...
Market SegmentationMarket Segmentation
Market segment – division of heterogonous market
into homogonous market based on di...
PRODUCTPRODUCT
Product - a good, service or idea, including all
attributes provided in an exchange between buyer
and selle...
Classifying GoodsClassifying Goods
Consumer Goods:
 Convenience good –
inexpensive and
regularly consumed
 Shopping good...
Product Line and ProductProduct Line and Product
MixMix
Product Line - a group of related products
that are considered a ...
Product AttributesProduct Attributes
Brand - a name, sign, symbol, design, or
combination a company’s product to
distingu...
PRICINGPRICING
Price - the value that buyer exchange for a
product in the marketing transaction
Pricing Objective:
– Mar...
Pricing Decision and MethodsPricing Decision and Methods
Factors in Pricing Decisions:
– Price and non-price competition
...
Pricing StrategiesPricing Strategies
 Pioneer pricing – leadership pricing in the market
 Price skimming – setting an in...
PROMOTIONPROMOTION
Promotion - the communication of favorable,
persuasive information about a firm or product in
order to ...
The Promotion MixThe Promotion Mix
Promotion Mix - the combination of advertising,
personal selling, sales promotion, publ...
AdvertisingAdvertising
 Non-personal communication to a target audience
through a mass medium, such as TV, Radio,
newspap...
Advertising PromotionAdvertising Promotion
Advertising Media – variety of
communication devices for carrying
massage to p...
Personal SellingPersonal Selling
 Person-to-person communication with one or
more prospective customers in order to make ...
Sales PromotionSales Promotion
 An activity that offers customers or marketing
intermediaries direct incentives for purch...
Publicity and Public RelationPublicity and Public Relation
Publicity - a non-personal form of
communication transmitted i...
Special
Events
Special
Events
Written
Materials
Written
Materials
Public
Service
Activities
Public
Service
Activities
Spee...
Promotional Strategy:Promotional Strategy:
Push Strategy: promotion of a product to
wholesaler or retailers in the market...
DISTRIBUTIONDISTRIBUTION
Channel of Distribution - a group of
interrelated organization that directs the
flow of products ...
Type of Marketing Channels:Type of Marketing Channels:
Consumer Products:
 Producer-consumer: plant and flower, services
...
Type of Marketing ChannelsType of Marketing Channels
Industrial Products:
producer-industrial user: heavy
equipment and m...
Distribution OveragesDistribution Overages
Intensity Distribution - market coverage in which
all available outlets are use...
WholesalingWholesaling
The marketing activities of intermediates who sell to retailer,
industrial users, and other wholesa...
RetailingRetailing
The marketing activities involved in selling products
to final consumers for personal or household use
...
RetailingRetailing
 Catalog Showroom: a form of warehouse show-
room where customers select products from
catalogs sent t...
Physical DistributionPhysical Distribution
Those activities that involve the movement of
products through marketing channe...
Basic Channels of DistributionBasic Channels of Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributor...
Typical Distribution of DrugsTypical Distribution of Drugs
Manufacturers
Marketing Agents
Retailers/Wholesalers/Distributo...
Marketing management
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Marketing management

  1. 1. MARKETING MANAGEMENTMARKETING MANAGEMENT Lecture Notes for Business Introduction By Fahmy Radhi
  2. 2. Marketing ConceptsMarketing Concepts Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of idea, goods, and service to create exchanges that satisfy individual and organizational objective Marketing Mix is the combination of products, price, promotion, and distribution, used to satisfy the needs of the target market
  3. 3. Product Variety Quality Design Features Brand Name Packaging Services Product Variety Quality Design Features Brand Name Packaging Services Price List price Discounts Allowances Credit Terms Price List price Discounts Allowances Credit Terms Promotion Advertising Personal Selling Sales Promotion Public Relations Promotion Advertising Personal Selling Sales Promotion Public Relations Place Channels Coverage Assortments Locations Inventory Transportation Logistics Place Channels Coverage Assortments Locations Inventory Transportation Logistics Target Costumers Intended Positioning Target Costumers Intended Positioning Marketing Mix
  4. 4. Marketing ActivitiesMarketing Activities Product:  Develop new products  Modify existing products  Test-market products  Select brand name  Package product Pricing: Establish price objectives Conduct cost analysis Analyze competitor’s price Set actual prices
  5. 5. Marketing ActivitiesMarketing Activities Promotion:  Determine types of promotion  Design the advertising massage  Selecting advertising media  Schedule the advertisements Distribution:  Select wholesalers and retailers  Establish procedures for handling and moving products  Find the best locations for plants, warehouses and retail outlets
  6. 6. MarketMarket Market is people with the authority, financial ability, and willingness to purchase a product Types of Market: Consumer market - for personal use Industrial market - to use in the production or resell
  7. 7. Target MarketingTarget Marketing Target market - a group of people that has similar wants and needs which a firm directs its marketing activities  Undifferentiated approach – one marketing mix for a product to the total market  Market Segmentation approach – the division of the total market into segment with marketing mix directed to different segment
  8. 8. Market SegmentationMarket Segmentation Market segment – division of heterogonous market into homogonous market based on different characteristics Segmentation Based:  Geographic bases - city, region  Demographic bases - sex, race, marital  Psychographics - a person’s attitude, lifestyle  Product-related - brand loyalty
  9. 9. PRODUCTPRODUCT Product - a good, service or idea, including all attributes provided in an exchange between buyer and seller Product Classification:  Consumer goods – products purchased by consumers for personal use  Industrial goods – product purchased by companies to produce other products
  10. 10. Classifying GoodsClassifying Goods Consumer Goods:  Convenience good – inexpensive and regularly consumed  Shopping goods – moderately expensive and infrequently  Specialty goods – expensive and rarely Industrial goods:  Raw material  Components parts  Equipment and installations  Services
  11. 11. Product Line and ProductProduct Line and Product MixMix Product Line - a group of related products that are considered a unit because of marketing, technical or use similarity  Product Mix - the total group of product offer sale, or all of the firm’s product lines Product Differentiation – creation of product or product image that differs from existing product to attract consumers
  12. 12. Product AttributesProduct Attributes Brand - a name, sign, symbol, design, or combination a company’s product to distinguish it product from others Packaging - the development of a container and graphic design for a product  Labeling - the display of important information on a product package
  13. 13. PRICINGPRICING Price - the value that buyer exchange for a product in the marketing transaction Pricing Objective: – Market share – Profit – Return on Investment – Status Quo
  14. 14. Pricing Decision and MethodsPricing Decision and Methods Factors in Pricing Decisions: – Price and non-price competition – Supply and demand – Consumer perception of price Pricing Methods: – Cost-Oriented Pricing - Mark-up Pricing – Demand-Oriented Pricing - Break event point – Competition Oriented Pricing
  15. 15. Pricing StrategiesPricing Strategies  Pioneer pricing – leadership pricing in the market  Price skimming – setting an initial high price to cover new product cost and generate a profit  Penetration pricing – setting an initial low price to establish a new product in the market  Psychological Pricing – setting an initial high price to respond irrationally consumers  Price Discounting – Price reduction offered as an incentive to purchase
  16. 16. PROMOTIONPROMOTION Promotion - the communication of favorable, persuasive information about a firm or product in order to influential buyers Promotional Objectives:  Informing  Increasing sales  Stabilizing sales  Positioning the product  Building a public image
  17. 17. The Promotion MixThe Promotion Mix Promotion Mix - the combination of advertising, personal selling, sales promotion, publicity used to promote a specific product
  18. 18. AdvertisingAdvertising  Non-personal communication to a target audience through a mass medium, such as TV, Radio, newspapers, or magazines, and outdoor display  Types of Advertising: – Primary-Demand Advertising: for all products – Selective Brand Advertising: for specific products – Institutional Advertising: create public image
  19. 19. Advertising PromotionAdvertising Promotion Advertising Media – variety of communication devices for carrying massage to potential customers Direct Mail – delivery massage directly to customer places Internet Advertising – put the massage into website or mailed directly to customer email
  20. 20. Personal SellingPersonal Selling  Person-to-person communication with one or more prospective customers in order to make sale  Telemarketing – using telephone to perform the personal selling process  Types of Salespeople: – Order Getter – Order taker – Support salespeople
  21. 21. Sales PromotionSales Promotion  An activity that offers customers or marketing intermediaries direct incentives for purchasing a product  Type of Sales Promotion: – Coupon: reduces the price of a product by stated amount at the time of purchase – Rebate: an extra discount – Free Sample – Contest: consumer compete for prizes – Trade show
  22. 22. Publicity and Public RelationPublicity and Public Relation Publicity - a non-personal form of communication transmitted in news story form and not paid for directly sponsor Public Relations - a set of communication activities designed to create and maintain a favorable public image for firm
  23. 23. Special Events Special Events Written Materials Written Materials Public Service Activities Public Service Activities SpeechesSpeeches NewsNews Audiovisual Materials Audiovisual Materials Corporate Identity Materials Corporate Identity Materials Web SiteWeb Site Major Public Relation Tools
  24. 24. Promotional Strategy:Promotional Strategy: Push Strategy: promotion of a product to wholesaler or retailers in the marketing channel, who in turn promote the product to consumers Pull Strategy: promotion of a product direct to consumers to stimulate strong consumer demands
  25. 25. DISTRIBUTIONDISTRIBUTION Channel of Distribution - a group of interrelated organization that directs the flow of products from producers to ultimate consumers Marketing Intermediary - an individual or organization in marketing channel that provides a link among producers, other channel members, and final consumer
  26. 26. Type of Marketing Channels:Type of Marketing Channels: Consumer Products:  Producer-consumer: plant and flower, services  Producer-retailer-consumer: automobile, furniture  Producer-wholesaler-retailer-consumer: e.g. convenience goods  Producer-Agent/broker-wholesaler-retailer- consumer: e.g. consumer products
  27. 27. Type of Marketing ChannelsType of Marketing Channels Industrial Products: producer-industrial user: heavy equipment and machinery producer-wholesaler-industrial user: tools and automotive parts
  28. 28. Distribution OveragesDistribution Overages Intensity Distribution - market coverage in which all available outlets are used for distributing a product Selective Distribution - Market coverage in which only some of the available outlets are used for distributing a product Exclusive Distribution - Market coverage in which one outlet is used in specific geographic area for distributing a product
  29. 29. WholesalingWholesaling The marketing activities of intermediates who sell to retailer, industrial users, and other wholesalers. Types of Wholesalers:  Merchant Wholesaler: takes ownership of goods and the risks associated with ownership  Sales Branch: a manufacture-owned wholesaler that take title to products, risks, and provides service  Agent: a wholesaler hired by a buyer or seller on a permanent basis and paid commissions  Broker: a wholesaler who bring together buyers and seller on temporary basis
  30. 30. RetailingRetailing The marketing activities involved in selling products to final consumers for personal or household use  Department Store: a large retailer organized into separate departments and offering a full line of services and wide product mix  Supermarket: a large self-service retailer that stock a wide variety of groceries and a limited assortment of nonfood products
  31. 31. RetailingRetailing  Catalog Showroom: a form of warehouse show- room where customers select products from catalogs sent to customers’ homes or available in the store  Direct Marketing: non-store retailing that uses non-personal media to introduce products to consumers who then purchase the product by mail, telephone, computer, or TV
  32. 32. Physical DistributionPhysical Distribution Those activities that involve the movement of products through marketing channels from manufacturer to customer, including:  Transportation: shipping goods to customers by rail, air, truck, water, and pipeline  Warehousing: the receiving, storing, and shipping activities involved in the physical distribution of goods  Order Processing: the receipt and preparation of an order for shipment  Material Handling: the physical handling of products during transportation and warehousing
  33. 33. Basic Channels of DistributionBasic Channels of Distribution Manufacturers/products Agents/brokers Wholesalers/distributors RetailersRetailers Consumers and organizational end users
  34. 34. Typical Distribution of DrugsTypical Distribution of Drugs Manufacturers Marketing Agents Retailers/Wholesalers/Distributors Private GPs/specialists Group Procurement Office Retail Pharmacy Public Hospitals / Institutions

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